This section is designed to provide general information about some keys steps of the mortgage loan approval process.
Our Mortgage Glossary explains many of the terms used by mortgage and real estate professionals.
In this application checklist you will find a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation.
When you’re ready to purchase home, it’s necessary to have some cash assets ready to cover the expenses that cannot be added to your mortgage. Buyer’s are responsible for closing costs in addition to the down payment, but a seller can assist.
The three major credit bureaus: Experian, Equifax and Trans Union provide credit reports with FICO scores to mortgage lenders. Credit reports detail a consumer’s credit history. The FICO score is an indicator to help creditors determine the liklihood that a new loan will be paid as agreed.
If you make a down payment of less than 20% of the purchase price of the home, most conventional mortgage lenders generally require that you take out Private Mortgage Insurance (Private Mortgage Insurance) that protects the lender in case you default on your mortgage. Government Insured loans have their own version of mortgage insurance as well.